Assuming they own their home outright, are relatively healthy and aged between 65 and 85, singles and couples will need retirement savings of $545,000 and $640,000 respectively for a comfortable retirement, according to the Association of Superannuation Funds. At October 2017, the average balances for men and women between 60 and 64 were $270,710 and $157,049 respectively.
The table shows how a couple who have amassed ASFA’s magical figure of $640,000 in super (plus their own home, car, contents and a little bit of personal cash) could fund $65,000 living expenses, increased with CPI over time.
What’s important to take into account is how varying levels of age pension eligibility meet an increasing proportion of their living expenses over time. And at July 1, 2034, they would still have about…